No more conditions in raw jute exports

The government has completely opened the export of raw jute, removing it from the list of export products subject to conditions.

The decision comes following an increasing demand from exporters to this end.

The central bank on Wednesday informed all banks about the change and instructed them to take necessary steps in this regard.

Earlier, the commerce ministry confirmed the removal of raw jute from the list of export goods subject to conditions in the Export Policy 2021-24 in a circular published on November 21.

“The government has taken various initiatives to increase export earnings. The opportunity to export raw jute has been given after discussion with traders of the Bangladesh Jute Association (BJA),” Md Abdur Rahim Khan, additional secretary of the commerce minister, told The Business Post (TBP).

Citing jute exporters, he said the country is usually left with a huge amount of raw jute even after fulfilling local demands.

The secretary hoped removing the conditions will lead to an increase in the export of raw jute.

The government had initially nodded to raw jute exports subject to conditions till June this year, but the deadline was later extended till 31 October in two phases.

According to Export Promotion Bureau (EPB) data, Bangladesh exported raw jute worth nearly $14 crore in the fiscal year 2020-21 (FY21), which increased to $21.61 crore in FY22 after the government nodded to export under conditions. The commerce ministry has set a target to export raw jute worth $24 crore in the ongoing FY23.

Meanwhile, EPD data reveals that jute and jute goods export stood at $116 crore in FY21. 

India is the largest importer of Bangladesh raw jute. In addition, the product is also exported to Nepal, Pakistan, China and Brazil.

According to Bangladesh Jute Spinners Association, 75 to 80 lakh bales of raw jute are produced in the country annually. Of this, 60 lakh bales are required for jute production and 10 to 12 lakh bales are exported.